A proposed iron ore and copper mine is causing controversy amongst community groups on South Australia's Yorke Peninsula.

A mining lease application by Rex Minerals, for an open cut mine spanning 2,800 hectares on prime agricultural land, is currently being considered by the State Government.

It's expected to produce 75,000 tonnes of copper per year, 1.2 million tonnes of iron ore, and 60,000 ounces of gold.

Marie and David Linke farm just kilometres from the allocated site and say, while mining and agriculture can co-exist, the materials being extracted in this case will pose a serious risk to the environment.

"There's the concern of contaminated water from the mine leaching into the sea, we have a marine park here what impact's that going to have?" Mrs Linke says.

"When they run a port from Ardrossan, the workings of the mine are going to be right next door to our stored grain harvested from our crops, is there going to be a cross contamination?"

Mr Linke says State Government consultation with the community has been non-existent.

"No-one's been. [Minister Tom] Koutsanotnis has been asked over many times and still being asked over and he still hasn't even replied."

"We really don't matter to the government."

State Government criticising "scare campaign"

But the Minister for Mineral Resources Tom Koutsantonis says he's visited the region twice to meet with community groups and will meet with landholders again this week during a planned protest at Parliament House.

"I have no problem meeting with people who want to voice opposition or support for any proposal."

"If there are individual farmers or businesses that want to meet with me...I'm happy to meet with them."

He says mining and agriculture can co-exist and that some groups are simply running a scare campaign trying to convince people otherwise.

"It won't mean that mining will stop in and around the Yorke Peninsula, you'll have two economic assets that are helping to grow the prosperity of the local peninsula."

"I know and understand that people who have been on that land for generations are very concerned, and we'll take all of that into consideration."

"But this consultation period is the opportunity for Rex Minerals to put out its proposal and hear what the community's thoughts are,""This isn't the government's consultation period."

Business owner and president of the Ardrossan Progress Association John Sandercock says he initially supported the development, but has since become more concerned about the costs to agriculture and tourism.

"The more we learnt about the project it very quickly became apparent that it's a much bigger project than I first ever imagined."

"There's no doubt that the project will deliver significant economic benefits but we need to make sure those benefits far outweigh the cost and at the moment I'm not sure that will happen."

He's calling for more long-term economic modelling to be carried out.

"Yes serious mining royalties will flow into the state, but what we need to look at is that big hole in the ground will never produce grain again."

"You need to do the modelling well past the 15 years and no-one's sat down and done that."

Rex Minerals CEO Mark Parry says the company ran three community consultation sessions at the weekend to address concerns and will continue to liaise with residents.

"Our dust is not toxic, there is no asbestos at the mine, the uranium levels are low and we are spending $30 million on the [Ardrossan] Port to ensure that we cover all of the conveyers."

"At the end of the day it will be the government that needs to decide whether the impacts and the concerns of mining - although we will manage those very closely - outweigh the economic benefits that will be provided."